SAN FRANCISCO--Path, which found itself as the target of outrage last month after it was discovered that its app was absorbing users' address books without notifying them, is promising to "hash" personal data it uses in the next release of its app.

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The Path controversy quickly spread as it came to light that many apps take in address books to help connect and add users. The issue soon caught the attention of lawmakers, and led Apple to say that it would enforce its policy, which requires app makers to notify users when its taking personal information.

Ultimately, the privacy mess did nothing to hurt Path's business. While Morin said a "small number of users" asked Path to deactivate their accounts--at that time, a users couldn't do that on their own--the company has steadily been adding users.

Since it released Path 2.0 in November, Morin said more than 2 million people have become members.

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Paul Sloan is editor in chief of CNET News. Before joining CNET, he had been a San Francisco-based correspondent for Fortune magazine, an editor at large for Business 2.0 magazine, and a senior producer for CNN. When his fingers aren't on a keyboard, they're usually on a guitar. Email him here.
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